A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire.

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This also known as "subscription rights" or "share purchase rights".

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Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options. Understanding Rights Issues

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